University tuition fees in England are £9,790 a year in 2026/27, and are expected to keep rising in future years. Add living costs of £12,000–£18,000/year outside London, and a three-year degree now costs between £65,000 and £85,000 in total. While student loans cover tuition fees and contribute to living costs, the maintenance loan often doesn't cover actual living expenses, leaving parents to fill the gap. Starting to save early makes an enormous difference.
What University Actually Costs in 2026
Tuition fees in England are £9,790/year in 2026/27 (£29,370 for a three-year degree). The student maintenance loan covers some living costs: the maximum for 2026/27 is £14,135 a year for students living away from home in London, £10,830 elsewhere and £9,118 for those living with their parents. The full amount only goes to students from lower-income households; above that, the loan is reduced and parents are expected to help. But the actual cost of student living in UK cities is typically £14,000–£18,000/year. The gap between the maximum maintenance loan and actual costs is often £3,000–£7,000 a year, and more if your child gets less than the maximum loan, which families are expected to fill.
- Tuition fees 2026/27: £9,790/year (£29,370 for 3 years)
- Maintenance loan (max, away from home outside London): £10,830/year
- Actual student living costs: £14,000–£18,000/year outside London
- Funding gap per year: approximately £3,000–£7,000 in most cities, more on a reduced loan
- 3-year funding gap: £9,000–£21,000 or more, which is what parents may need to cover
Junior ISA: The Best Saving Vehicle
A Junior ISA (JISA) allows you to save up to £9,000/year tax-free for your child. The money is locked until age 18, when the child can access it and use it for university or any other purpose. Stocks and Shares JISAs invested in global index funds have historically grown significantly over 10–18 years. £100/month from birth into a Stocks and Shares JISA at 7% average return would grow to over £38,000 by age 18. Even starting later, contributions compound powerfully.
- Annual JISA allowance: £9,000 per child
- Two types: Cash JISA (safer) or Stocks and Shares JISA (higher long-term growth)
- Locked until age 18; the child controls it from 18
- £100/month from birth at 7% = ~£38,000 by 18
- £200/month from birth at 7% = ~£76,000 by 18
- See our Junior ISA accounts guide for how to compare providers
Stocks and Shares JISA vs Cash JISA
For children under 5, a Stocks and Shares JISA is almost always worth considering: there's a long enough time horizon to ride out market volatility. For teenagers within 2–3 years of university, switching to a Cash JISA reduces risk. Many parents hold a Stocks and Shares JISA throughout and begin shifting to cash within 2–3 years of the expected withdrawal date.
- Under 5: Stocks and Shares JISA recommended (13+ years to recover from volatility)
- Ages 10–15: consider gradual switch to cash as university approaches
- Ages 16–18: mostly cash to protect against market crash before withdrawal
- Popular providers: Vanguard, Hargreaves Lansdown, Fidelity (stocks); Nationwide, Coventry (cash)
Other Ways to Help With University Costs
Even if you haven't saved specifically for university, there are other ways to support your child. A regular bank account with an interest-bearing current account is better than nothing. Grandparents can contribute to a JISA (total contributions from all sources are capped at £9,000/year). Your child can work part-time (up to 15–20 hours/week is common during term time). Some employers offer bursaries or apprenticeships. University doesn't have to mean a traditional three-year degree: apprenticeships can provide equivalent qualifications without the debt.
- Grandparent contributions: family can all contribute to one JISA (up to £9,000 total/year)
- Part-time work: £4,000–£8,000/year from part-time work is realistic
- Degree apprenticeships: earn while studying, no tuition fees
- Living at home: can save thousands a year on accommodation, though the maintenance loan is lower
- Scholarship and bursary research before choosing university
Should I pay my child's tuition fees upfront?
For most people, no. The student loan system means tuition debt is only repaid once income exceeds the threshold, and it's written off after 40 years for students starting since 2023 (Plan 5). Many lower and middle earners never repay in full, so paying upfront can mean paying money that would otherwise have been written off. It is usually only worth considering if you are confident your child will be a high earner who would repay the whole loan, and even then the money might be more useful as a house deposit later.
What if my child doesn't go to university?
The JISA matures at 18 and the money is theirs to use however they choose: university, a house deposit, travel, a business. It's not restricted to education.
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